Affordable Housing Overview July, 2018 1
Denver’s Need for Housing For a household of three: 0% ------------ 30% AMI ------------ 60% AMI ------------ 80% AMI ------------ 100% AMI $0 $24,300 $48,600 $64,750 $81,000 Residents Affordable Attainable Experiencing Rental Housing Homeownership Homelessness 68,000 renters households 35,000 owner households At least 3,336 households reported homelessness in that are “cost-burdened” that are “cost-burdened” 2017 Point in Time Survey Median attached home price Median rent at $1,390 is $915 Median rent at $1,390 is at $325K is $100,000 more more than a 30% AMI $450 more than a 60% AMI than an 80% AMI household household can afford. Services household can afford can afford can cost an additional $10-15k per year.
Dedicated Funding for Housing Property y Tax - 0.422 mills in 2017 for housing - Represents approximately $7.5 million annually, value is expected to grow slowly but steadily over time Devel elopme ment F Fee ee - Will be updated annually based on growth in CPI Re Residentia ial Sing ngle-Family/Dupl plex $0. $0.62 62/sq sq ft Re Residentia ial Multi-Fami mily $1. 1.55/ 5/sq sq ft Com omme mercial Hotel/Office/Retail/Ot Othe her $1. 1.76/ 6/sq sq ft Com omme mercial Industri rial/Agri ricultural $0. $0.41/sq sq ft
Housing an Inclusive Denver Overview Housing Pl Plan an’s K Key G Goal als: Creat ate a affordab able housin ing in in vulnerable ar areas as AND in areas o of opportunit ity y Preserve affordab ability y and housing q qual alit ity Pr Promote e equit itable an and acce ccessible hou ousing op options Stab abili lize residents at at ris isk of i involu luntar ary y displacement
Housing an Inclusive Denver Overview 40 40-50% % of housi sing resources s will be invested to serve people earning below 30% of Area Median Income (AMI) and those experiencing homelessness who are seeking to access or maintain rental housing, including: 20 20-25% % of housi sing resources s to serve • residents experiencing homelessness 20-25% of hous 20 using resources to serve • residents earning below 30% AMI 20 20-30% % of housi sing resources s will be invested to serve people earning 31% to 80% AMI who are seeking to access to rental housing or to maintain rental housing. 20 20-30% % of housi sing resources s will be invested to serve residents seeking to become homeowners or remain in homes they already own.
Proposal to Increase Dedicated Fund Annua nnual A Affordable H Hous using F Fund und’s Revenue ues Double the affordable housing fund from (Loca (L ocal) $15M per year to $30M per year Existing: Linkage Fee $1,500,000 Increase RMJ special tax rate by 2%, • dedicate proceeds to the AHF ($8M Existing: General Fund/DHS Transfer in 2019) (backfills the linkage fee during $6,800,000 Increase annual General Fund transfer initial ramp up) • to AHF by $7M starting in 2019 Existing: 0.442 mills for 20 years $7,500,000 Contract with the Denver Housing New Starting in 2019: 2% RMJ $8,000,000 Authority to bond current property tax mill, New Starting in 2019: Annual $7,000,000 generating approximately $105M: General Fund/DHS Transfer 50% will be used to accelerate DHA • To Total $30,800,000 unit creation/preservation 50% will fund land/property acquisition • Prop operty T Tax Pass Thr hrou ough t to D o DHA f for or to create a longer-term pipeline of Bonding ng projects serving our most vulnerable residents Existing 0.442 mills for 20 years $7,500,000 Potential bond proceeds over 5 $10 105,000,000 years
AHF Outcomes- Current + 7 Framework CCD $ $15M CCD CCD $ $7M Investme ment “Pay ay-as as-yo you-go go” “Pay ay-as as-yo you-go” o” $105M b bonding w with DHA Total O al Over F Five t to Ten Ty Type (current h (c housing (prop opos osed s star arting (prop opos osed s star arting 2 2019) Year ars pl plan) 201 019) OED Projects ~3,000 units ~750 units 3,750 units OED Programs 30,000 households 1,000 households 31,000 households Land/Property ~1,200 units 1,200 units Acquisition ~751 units created (202 previously DHA’s planned, 549 additional) Accelerated 1,294 units ~543 units preserved Pipeline (333 previously planned, 210 additional) 6,244 uni units Total P Projected O Out utcomes Across all Resource ces 31, 1,000 000 h households
Proposed Timeline for Adoption Ta Task April il May ay June July August Au Fall 2 ll 2018 Jan anuar ary 201 018 201 018 201 018 201 018 201 018 201 019 Stakeholder and Public Outreach IGA Development Council Outreach Council Adoption 2019 Budget Adoption Revenue Available for Investment 8
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